HUD Giving Non-Profits and Governments Discount on REOs

The Department of Housing and Urban and Development (HUD) announced last week that they will give state and local governments and nonprofits participating in the Neighborhood Stabilization Program (NSP) preference to buy its REO at 10% below the appraised value. The new initiative will also give these buyers a 14-day first-look period to consider buying the property ahead of investors. In May, HUD announced a third round of NSP grants which allow nonprofits, state and local governments to use the money to buy and rehabilitate vacant homes in an effort to grow local economies and create jobs. The money is also put toward down payment and closing-cost assistance to low- and middle-income homebuyers.